Michael Noonan said he would be able to bring in less severe budgets as a result of the agreement.

The deal will see the Anglo Irish Bank promissory note swapped for longer term government bonds which cheaper repayments.

But the Finance Minister says the deal does not include a write-down on Ireland's bank debt, because the ECB 'doesn't give write-downs' to anyone.

Mr Noonan added said the deal would result in less severe budgets in the coming years.